Brexit Without a Trade Deal Would Open Pandora’s Box CBI President Says

Plunging out of the European Union in two years without a new trade deal would open up a Pandora’s box for Britain’s businesses, Paul Drechsler, the president of CBI, has warned.

As Theresa May prepares to trigger the formal talks process for leaving the EU, Drechsler used a speech at Mansion House in the City of London on Thursday night to warn that the two-year article 50 process would be a “roller-coaster” for businesses trying to plan for the future.

The prime minister has said that at the end of the two-year process, no deal would be better than a bad deal, and the Brexit secretary, David Davis, has warned his cabinet colleagues to draw up contingency plans in case Britain has to exit without a deal and is forced to trade with the rest of the EU on less preferential World Trade Organisation terms.

But Drechsler said the consequences for some companies would be so dire it was impossible for them to prepare.

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza